Hey guys
How many percent do you make every month from trading ?! Simple question
Hey guys
How many percent do you make every month from trading ?! Simple question
i can push for doubling my account in 2 weeks with clear edge but that’s not my objective and that’s just me , you can do whatever you want to do
The numbers which have been thrown across the room over the past few years in popular retail trading forums [from a long term and consistent view, which is a very important variable] lie within the following…
And this is what i’ve seen on successful real live account too, so i’m inclined to believe it. Sure, there will be some accounts that you see where they are making perhaps 100% a month, but this is not going to be consistent or long-term and is just a gamble. In the last 10 years i’ve never seen a real live account make anywhere near over 20% a month with sensible risk parameters, but I’ve seen plenty of hype from hot headed wannabes saying it’s more than possible…it goes without saying that verified proof is never available to back up such rumours
I’ll leave you to decide why this is the case.
But; for me it’s very difficult to mention any specific number; because there is no fixed figure for me.
this was a great post, just above, from the BaconSandwich
he got it totally right
and you have to bear in mind, also, that there are far more people making losses than making profits
Bacon, in fact I am cooking up a pound right now,
Thank for this information. I must confess I am in your risk-off category.
I do know a few traders that earn more than 1% daily consistently. These folks aside from large equity accounts have exceptional emotional control. They are also excellent with sizing, position building and scaling in or out of positions and most definitely not afraid to close a loser.
But most are that are profitable are in the other two categories.
Hey @midwest, it’s certainly not gospel or a hard and fast rule, also perhaps the term Risk Off is a little misleading. I’d also imagine that the returns tend to inversely correlealate to ones account size. In general the larger the accounts the lower the targeted returns because these accounts are more interested in capital preservation rather than the risk to aim for higher returns.
It’s just an observation from what i’ve seen over time, and i’m sure there are more accounts out there that are way more successful when considering the professional elite level.
I’ve had a few 30% consecutive months in the past - but that comes down to being in the right place at the right time - which we will all experience when trading a large enough sample size. What’s key though, is how to deal with the flip side of the same coin, which is when you’re in the wrong place at the right time, which again we will all experience when trading a large enough sample size.
Bacon, my bacon & egg sandwich was excellent!
The term risk off I’m sure has different connotations for different traders and context used.
For me, in forex I trade small lot sizes and small number of trades at a time.
The folks I trade with have accounts from $2,500 to $250,000 and several are extremely consistent day in and day out year after year. I am taught that there may be times not to trade where the volatility is slim to none. But that a trader should be able to trade in any market. I am a rookie and have just learned to be consistently profitable and do not have a long term track record yet, but the rest will follow as I have recently rained in my gambling emotions.
I do think people in any field tend to platform and trading is no different. However when observing hedge funds they work very hard to earn decent returns and they are less then really good protraders, I attribute that to the billions they are responsible for.
My daily profit is 1%…So i can make around 30% per month…
amri that is very good, especially when annualized.
A lot of checks being written with peoples mouths that their broker statements can’t cash. Catch my drift?
I challenge anyone here to show a statement that shows more than 2% monthly for 2+ years. Otherwise it’s a lot of hot air and ego’s here, and nothing else.
Interesting…in my part of the world there are usually only about 20 trading days in a month: 5 days per week, four weeks per month …
When you make 1% a day they let you trade over the weekends.
Really!!??? Wow! Can’t wait until I get into that club!
Seriously though, I think the issue of what percentage one makes should be treated with a lot of care. Unlike with a bank account, most money held in a trading account is actually passive and not earning anything. And the amount that a trader keeps in the trading account is completely arbitrary above the minimum required to comfortably cover margins, etc.
Therefore two traders with identical trades but with totally different balances will have very different percentages.
For example, if 12 have 50000 in my account and make 1000 in a month one might say that it a poor percentage. If I then draw 40000 out and the next month I again make 1000 profit you weill be asking for my charts, methods, hailing me as a hero and demanding that i work as your mentor!
Right, you are describing RoC, or return on capital. Some of my trades have a 10% RoC because of capital usage and leverage, but only returns 1-2% for my overall portfolio equity. Both are important numbers but mean different things. In most cases, people want to know the return on equity rather than RoC.
Also, percentage profits will for most traders (I would think) vary considerably depending on what kind of trader they are. Markets are not consistent or regular in their movements. Therefore a trend trader will do exceptionally well in a month with a strong trend but poorly in a consolidating period. Equally, a short term trader will probably miss big chunks of a strong move but make money on the swings. Either way, our profits are largely slaves to the market and what it offers us rather than purely dependent on our skills at trading.
Precisely!
And in order to do any kind of meaningful comparisons with other traders’ statistics one needs to know the basis on which they are being calculated. For example, is it the capital/equity per account? Or if one has 2 or 3 accounts for various purposes, is it an overall figure across all accounts or per account/purpose, etc.
That is why I like my broker. I can trade futures, options, stocks, collect dividends, etc, and get a single P&L against my 1 account equity.
That is very useful!
I would like to ask your opinion about the topic of this thread:
Considering most people asking about this issue are probably relative beginners and looking for some kind of yardstick to judge their progress by, do you think this particular metric is actually more misleading that useful as a guide for such persons at that stage in their development?
Personally, I would have thought metrics such as percentage wins and average profit/loss per trade might be more tangible and relevant?
What do you (or anyone) think?